By Admin 
India’s GDP Growth: There was some slowdown in the country’s economic growth during the last financial year, but the growth rate is expected to pick up again in the current financial year. According to the latest forecast of the government, the growth rate of Gross Domestic Product (GDP) in the current financial year may be 7.4 percent, which was recorded at 6.5 percent in 2024-25.
The government believes that strong domestic demand, improvement in investment activities and policy support will give impetus to economic activities, which will make this increase in growth rate possible.
According to the government forecast of Gross Domestic Product (GDP) released by the National Statistical Office (NSO), the service sector will lead the economic growth in the financial year 2025-26. It is estimated that the growth rate of the services sector will be 7.3 percent, while the fastest growth of 9.9 percent can be recorded in financial, real estate, public administration, defense and other services.
Estimated increase in GDP growth
Apart from this, an increase of 7.5 percent has been estimated in activities related to trade, hotel, transport, communication and broadcasting. At the same time, the manufacturing and construction sector is also expected to grow at a pace of 7.0 percent during the current financial year, which will be supported by domestic demand and government capital expenditure.
On the other hand, credit rating agency India Ratings and Research has estimated India’s economic growth rate to be 6.9 percent in the financial year 2026-27. According to the agency, reforms like GST and income tax cuts, as well as trade deals will strengthen economic activity and the economy will be largely protected from the impact of global instability.
India Ratings Chief Economist Devendra Kumar Pant said that an environment of low inflation (average retail inflation of 3.8%) may persist with high growth rate in the next financial year. He said that India-US trade agreement with low tariffs can further support GDP growth. The agency has estimated the GDP growth to be 7.4 percent and GDP at market price to be 9 percent as per the base year 2011-12 in the current financial year. Along with this, the rupee is expected to remain at an average of 92.26 per dollar in the financial year 2026-27, which is 88.64 per dollar in the current financial year.
Will benefit from free trade agreement
India Ratings says the proposed free trade agreements (FTAs) with New Zealand, Britain and Oman will boost foreign investment and help control the current account deficit. According to the agency, the Union Budget for 2026-27 to be presented on February 1 will include customs rationalization and Developed India-Ram-Ji Act There may be important announcements under allocation. The report of the 16th Finance Commission is also expected to be released on the same day.
Regarding tax revenue, the agency has estimated that there may be a shortfall of about Rs 2 lakh crore in the current financial year, which can be compensated by limited reduction in non-tax revenue and capital expenditure. However, the fiscal deficit is expected to remain within the budget target of 4.4 percent of GDP, i.e. Rs 15.69 lakh crore.
Also read: Silver price increased three times, yet India remains the largest importer in 2025, now China increased tension